Mean Returns

Calculates the mean (average) returns for a portfolio of assets over a specified time period. This is a fundamental metric for portfolio analysis and Modern Portfolio Theory.

Parameters

Parameter Type Required Description
Portfolio string Yes Comma-separated list of ticker symbols
Period string No Time period (1Y, 3Y, 5Y, etc.)
Variation string No Return variation type

Notes

  • Returns are typically annualized
  • Used as input for portfolio optimization

Examples

=MeanReturns("AAPL,MSFT,GOOGL")
Mean returns for 3 stocks
=MeanReturns("SPY,QQQ,IWM", "3Y")
3-year mean returns
=MeanReturns("AAPL,MSFT", "1Y", "daily")
1-year daily variation
=MeanReturns(A1:A10)
Portfolio from cell range

When to Use

  • Portfolio performance analysis
  • Expected return calculations
  • Input for portfolio optimization
  • Comparing asset returns
  • Risk-adjusted return analysis

When NOT to Use

Scenario Use Instead
Need risk metrics Skewness() or Kurtosis()
Need efficient frontier PortfolioEfficientFrontierChartReport()
Need simulation MonteCarloSimulation()
Need drawdown analysis Drawdowns()

Common Issues & FAQ

Q: What period format should I use? A: Use formats like 1Y (1 year), 3Y (3 years), 6M (6 months).

Q: Are returns annualized? A: Yes, returns are typically annualized for comparison purposes.

Q: How are returns calculated? A: Based on historical price data for the specified period.

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MarketXLS Excel Add-in Tutorial - How to Use Mean Returns and Other Financial Formulas
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